CSL - CSL Limited

[Dona Ferentes]

and just for the record, someone said no Aussie company does well with acquisitions. I replied ""CSL". The response was , but so long ago.

1. In 2000, CSL bought Zentrallaboratorium (ZLB), the blood plasma division of the Swiss Red Cross, for CHF860 million after outbidding Novartis in an auction.
2. With that entry into the lucrative US plasma products market, in late 2003, it acquired Avetis Behring in 2003 for $965 million; this broadened its product range and was combined with ZLB Bioplasma. This is now known as global biotechnology leader CSL Behring.
3. Bought US plasma collector Nabi, which helped to form the world’s premier plasma collection company, CSL Plasma
4. It purchased the Novartis influenza vaccine business for US$275million in 2014; now known as Seqirus, it is one of the largest influenza vaccine providers in the world.

 

[Sean K]

and just for the record, someone said no Aussie company does well with acquisitions. I replied ""CSL". The response was , but so long ago.

1. In 2000, CSL bought Zentrallaboratorium (ZLB), the blood plasma division of the Swiss Red Cross, for CHF860 million after outbidding Novartis in an auction.
2. With that entry into the lucrative US plasma products market, in late 2003, it acquired Avetis Behring in 2003 for $965 million; this broadened its product range and was combined with ZLB Bioplasma. This is now known as global biotechnology leader CSL Behring.
3. Bought US plasma collector Nabi, which helped to form the world’s premier plasma collection company, CSL Plasma
4. It purchased the Novartis influenza vaccine business for US$275million in 2014; now known as Seqirus, it is one of the largest influenza vaccine providers in the world.

CSL one of the great success stories, along with CBA and WES for long term hold propositions.

 

[Dona Ferentes]

CSL provides the following information for the purposes of ASX Listing Rule 17.1:

(a) The trading halt is requested pending an announcement regarding a potential material acquisition and associated capital raising.

 

[Dona Ferentes]

and is it material? $10bill is mentioned. Yesterday

CSL confirm[ed] that it is in discussions with Vifor Pharma Ltd regarding a potential transaction, however at this time there remains no certainty that any transaction will result and, if a transaction does result, when such a transaction would occur, the company said in a statement.

CSL said it will keep the market informed in accordance with its continuous disclosure obligations, and otherwise does not intend to comment on such matters.

.... while the media is reporting; As well as finishing due diligence on what looks increasingly likely to be the biggest acquisition to date, CSL and its bankers have been prepping for a major $4 billion odd equity raising.

The raising makes timing the deal even more critical. It is next to impossible to get a rights issue completed over Christmas. Instead, the company is understood to be working on a placement, with a share purchase plan for retail investors.

 

[Garpal Gumnut]

and is it material? $10bill is mentioned. Yesterday


CSL said it will keep the market informed in accordance with its continuous disclosure obligations, and otherwise does not intend to comment on such matters.

.... while the media is reporting; As well as finishing due diligence on what looks increasingly likely to be the biggest acquisition to date, CSL and its bankers have been prepping for a major $4 billion odd equity raising.

The raising makes timing the deal even more critical. It is next to impossible to get a rights issue completed over Christmas. Instead, the company is understood to be working on a placement, with a share purchase plan for retail investors.

This may be the Macquarie-isation of CSL.

A TO and a CR. Serious stuff.

Vifor îs in to renal, which I believe is kidney, and other boomer ailments which will be the life blood of Big Pharma for the next 20-30 years until that generation carks it.

gg

 

[qldfrog]

And now in trading halt for the spp

 

[Dona Ferentes]

And now in trading halt for the spp

Or the placement. Peons wait at the side door.

CSL is required to have certainty of funds as part of its takeover under Swiss laws, hence the big and quick equity raising. A placement is the quickest and arguably easiest way for an Australian company to raise equity.

Though the talk is $3B from insto's and one billion from SPP. Juicy.

 

[Dona Ferentes]

CSL has made a $US179.25 per share bid for Switzerland’s Vifor Pharma.

 

[Dona Ferentes]

HIGHLIGHTS

• Expands CSL’s leadership across an attractive portfolio focused on Renal Disease and Iron Deficiency
• Complements CSL’s existing therapeutic focus areas including Haematology, Thrombosis, Cardiovascular, and Transplant and high quality pipeline
• CSL’s global reach, R&D capabilities and resources augment the delivery of Vifor Pharma’s products to patients
• All-cash public tender offer of US$179.25 per Vifor Pharma share, payable in U.S. dollars, representing an aggregate equity value for Vifor Pharma of US$11.7 billion / A$16.4 billion
• Tender Offer is unanimously recommended for acceptance by Vifor Pharma’s Board of Directors
• Patinex AG, Vifor Pharma's largest shareholder holding 23.2% of Vifor Pharma’s share capital, has agreed to tender its shares
• Expected to be low-to-mid teens NPATA per share accretive in the first full year of CSL ownership, including full run rate cost synergies
• US$12.3 billion / A$17.2 billion all-cash acquisition consideration to be funded through a combination of US$4.5 billion / A$6.3 billion fully underwritten Placement, US$6.0 billion / A$8.4 billion new debt and existing cash / undrawn facilities
• CSL will also undertake a non-underwritten Share Purchase Plan for eligible shareholders5 in Australia and New Zealand. The SPP is targeting to raise up to A$750 million (US$534 million)
• CSL confirms FY22 NPAT guidance of c. US$2,150 million – US$2,250 million @ CC

 

[Dona Ferentes]

Though the talk is $3B from insto's and one billion from SPP. Juicy.

6.3B from placement, 750M from SPP.... more like it

 

[Dona Ferentes]

CSL said the $6.3 billion placement received strong support from existing shareholders and new investors. Following a book build process, it was priced at $273 a share, representing an 8.2 per cent discount to CSL’s closing price of $297.27 on Monday. The company will issue about 23.1 million new shares under the placement.

Institutional shareholders who bid at the final placement price for an amount less than or equal to their pro rata share of placement shares were allocated their full bid.

Sources suggested that fairness to all shareholders was important to the CSL board, led by Brian McNamee, and existing shareholders were prioritised in the allocations of the remaining shares under the placement.

A share purchase plan (SPP) for retail investors to raise up to $750 million will launch on December 21. The issue price of the new SPP shares will be whichever is lower: the $273 placement price or a 2 per cent discount to the five-day volume weighted average price of CSL shares up to closing of the SPP on 07 February.

- well, the trading always bounces around whenever there is a placement and SPP. Some is because the S/P is adjusting to the new influx of shares, some due to holders selling at a higher price to buy in at the book build, and some in that 'natural buyers' are drinking from the Well of New Issuance. .... and, plus, the cynic/ observer sees manipulation to some extent; keep the neophytes away.

So, for me, as a holder in my own name, but broke,.... but cash in my SMSF, and with the idea that I'd like to partake in this opportunity; options were:
- pay me a pension and buy in my own name in the SPP ( ... BUT already above minimum withdrawal)
- hit up a friend for a loan (and pay back in July as next year's pension drawdown)
- and, the less travelled path, buy on market for the SMSF and don't bother participating in SPP

What are the risk/ reward trade-offs? Trading around $273, then there may (or may not be) a discount VWAP in the next 6 weeks. The market may be up or down, and so CSL may move with the tide. Is today's price action (I mean, really, it's only 5% extra capitalisation, the pro rata fall should not be to the lower limit) a reflection of market silly-buggers OR is the consensus that this is a bum deal (I tend towards the former) ? And, finally, with 300,000 shareholders, the vast majority retail and with historic participation rates of between 30% and 50% uptake for such SPPs, and up to $30,000 from each s/holder, then is there a high likelihood of a scaleback (despite Brian McNamee's kind words).

So, I bought on-market $15K at $372.55 in the SMSF and may wait for another nibble, later on.
............................
and, by the by, the offer opens in Switzerland in mid-January; CSL must receive support from 80 per cent or more of Vifor shareholders to seal the deal.

 

[Dona Ferentes]

So, I bought on-market $15K at $372.55 in the SMSF and may wait for another nibble, later on.
............................

dyslexia rules, KO. That would be $272.55

 

[peter2]

I'm also a little disappointed that the market price fell straight to the approx SPP price. This seems to be a normal occurrence in this market.

I bought some CSL (Feb21) at $275 for a buy & hold portfolio. I was hoping that the $285 support would hold forever.

 

[Dona Ferentes]

I'm also a little disappointed that the market price fell straight to the approx SPP price. This seems to be a normal occurrence in this market.

Too true, Mr P. I think the algo boys are too clever by half, trying to front-run the weight of money.

(Short term - voting machine; long term - weighing machine)

 

[Knobby22]

I feel I am being diluted.

CSL growth is slowing and this takeover is an attempt to keep it high.
I sincerely hope that they know what they are doing.

We must have faith. Mc Namee is still involved which gives me some positivity.

 

[DrBourse]

I'm also a little disappointed that the market price fell straight to the approx SPP price. This seems to be a normal occurrence in this market.

I bought some CSL (Feb21) at $275 for a buy & hold portfolio. I was hoping that the $285 support would hold forever.

Hi peter2,

Today is 17/12/21 8.20am.

May as well throw my TA into the CSL mix.

I do not follow CSL for various reasons.

The Chart below gave quite a few TA warning signs over the past 2 mths.

Somebody ‘in the know’ realised there were problems with the CSL SP from 24/11/21 up to yesterday 16/12/21 – between those dates there were 12 RED Candles & only 2 Green – a great candlestick warning signal.

The 1st recent warning of trouble was on 23 & 24/9/21 where CCI (P108-109), and MFI (page 95) both gave sell signals.

The 2nd recent warning was on 15/10/21, same scenario as the 1st signals.

The 3rd warning was on 2/11/21, Similar to points 1 & 2 above.

The 4th warning was the ‘Nail in the Coffin” on 24/11 & 25/11/21 with CCI & a Tweezer Top giving signals.

There was also a Tweezer Top Formations on 22 & 23/9/21.

Within that period of late Sept 21 to Yesterday 16/11/21 there was only ONE +ive TA signal, that was on 29/9/21, and it was a very weak signal anyway.

Today looks like being a +ive day for CSL, they should regain some of the recent loss in SP – BUT on the other hand I cannot pick many Support Levels below the current SP.

Noticed that the EXPERTS value CSL somewhere between $230 & $280, I will run my slide rule over CSL sometime today.
This was obviously my Personal Opinion - SO - DYOR.
Cheers,
DrB

 

[DrBourse]

 

[peter2]

Pleased to see today's bullish(up) bar. Investors clearly needed the week-end to go through @DrBourse 's FA spreadsheets. The merger seems to be universally accepted as positive.

 

[Dona Ferentes]

Pleased to see today's bullish(up) bar. The merger seems to be universally accepted as positive.

timely 5% lift today, closing close to days $288 high (.... after trying same yesterday but spluttering back to below $275)

and the SPP documentation arrived in the inbox.

 

[Dona Ferentes]

With CSL trading around $248 a share, I wonder if retail will work out there is a possible discount benefit in play.

CSL has asked retail investors to help fund its Vifor acquisition. It called for bids into the share purchase plan by close of business on 07 February.

The SPP offered retail investors up to $30,000 of new shares at $273 a share or a 2 per cent discount leading into the SPP’s close.

The issue price of the SPP Shares will be the lower of:

• the Placement price, being A$273.00 per new share as announced on ASX on 16 December 2021; and
• a 2.0% discount to the 5-day volume weighted average price of CSL shares up to and including the closing date of the SPP (expected to be 7 February 2022), rounded to the nearest cent.

.... counting backwards, that 5 day (trading) period is starting on Tues 02 Feb